BackEC issues guidelines for party funding, election expenditure
The guidelines include maintaining books of accounts for tax deduction, providing audited annual accounts for every financial year and filing election expenses to the EC
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New Delhi: The Election Commission (EC) on Friday released guidelines for party funding and election expenditure to ensure greater financial transparency in the electoral process.
The guidelines include maintaining books of accounts for tax deduction, providing audited annual accounts for every financial year and filing election expenses to the EC.
The Income Tax Act, 1961, calls for political parties to maintain records for tax deduction. In the guidelines, the commission said that “besides ensuring maintenance of the accounts at all state and lower levels," political parties should also maintain consolidated accounts at their central offices and that the accounts should be audited and certified by qualified and practising chartered accountants. The EC has also said such a report for each financial year should be submitted before 31 October of each year.
In the just-concluded Lok Sabha elections, the EC had seized Rs299.9 crore of cash from across the country.
With growing criticism of the use of money power in elections, the poll watchdog held a series of meetings with representatives of major political parties. These guidelines are an outcome of such consultations, which aim to curb the abuse of money power during elections and provide a level playing field to candidates.
Stressing the need to maintain accounts, the EC has prohibited incurring of any cash payment above Rs20,000 in a day unless the payment is made in a village or town which is not served by a bank; or to any employee or party functionary or a payment required under any statute.
The EC has also said election expenditure should not exceed the ceiling prescribed from time to time. “Any payment in this regard by the party shall be made only through crossed account payee cheque or draft or through bank account transfer and not in cash," said the note marked to the presidents, general secretaries and treasurers of all political parties.
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